AUD/NZD Price Analysis: Bulls holding the fort
|- AUD/NZD bears have engaged following a break of support.
- Bulls still on the defensive and holding the fort.
AUD/NZD is in a barroom brawl between the bulls and bears at a critical point on the 4-hour charts and markets are now moving into a phase of consolidation into the Federal Reserve today.
The following recap explains the bearish thesis and brings you up to date with the price action.
Prior analysis
The extended correction on the daily chart to the 61.8% Fibo could well now be a fading opportunity:
With that being said, the 4-hour structure is still bullish:
While above the prior dynamic resistance and support, the structure would be expected to hold and equate to an upside attack into resistance.
However, given the recent failures and the broader bearish longer-term structure, there is a high probability of the support structure failing and this is where the bears will be seeking to engage with full force.
With that being said, there are still prospects of a move higher according to the weekly chart:
There has been a first time attempt at the weekly resistance and there is a full week to go yet and thus prospects of further upside potential to fully attack the bearish commitments.
Moreover, the daily close was bullish so the bulls are in charge and the daily wick could well be filled from a 4-hour upward continuation from support.
Live market, 4-hour chart
As can be seen, the bears have engaged but there have been met with bullish commitments that have equated to a series of downside failures to close below support structure. This is hardly encouraging.
The bulls are taking over at this juncture and now there is a bullish structure on the daily time frame as well.
AUD/NZD daily chart
As seen, the price has closed on Tuesday with a bearish candle which would now be expected to act as support should Wednesday's candle close higher and bullish.
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